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Friday, September 7, 2012

HAJJ PACKAGE PRICE

Masjid Qubaa

Why is the package price of the so-called international Hajj
(organised by tour operators) higher than that of state pilgrims’ boards? And
why is the VIP package of Hajj tour operators so expensive that only the men of
means can afford it? Since Hajj is one of the fundamentals of Islam, why can’t
we work towards low-cost pilgrimage to give as many people as possible the
chance to observe this once-in-a-lifetime-obligation?

Some of those who know my company would jump into the wrong
conclusion that this article is about justifying the so-called high fees my
company charges for its services for hajj or Umrah. Only the objective will
read it with an open mind and without any preconceived notions as to what I
intend. I will leave such to follow me on the journey into the heart of a tour
operator’s pricing determinants.

The Hajj tour operator has come to cater for the needs of
those pilgrims who desire a higher standard of service than the one offered by
state pilgrims’ boards. This class of pilgrims is composed of busy executives,
business persons and civil servants who would want to finish their rites and
return to their offices within the shortest possible time. The Hajj tour
operator, therefore, who provides indistinguishable service from one offered by
state pilgrims’ boards has a lot to learn in this industry. I am not saying
that what the state pilgrims’ boards are offering cannot be improved upon; in
fact I do not think humans should be kept in the conditions our Nigerian
pilgrims are made to endure during their stay in Minaa and Arafah. It is
subhuman.

Operations of the state pilgrims’ boards consist of
accommodating pilgrims in apartments not very close to the two Holy Mosques in
Makkah and Madinah; transportation is with buses manufactured in the 1980s and
‘90s under the Car syndicate Office (niqaabah); room configuration could
be up to 10 and above, the tents in Minaa are far-removed from the Jamaraat
area, and pilgrims are likely to linger for some time in Saudia after the
completion their Hajj rites. Some of these peculiarities are understandable
bearing in mind the large number of Nigerian contingent annually for the Hajj.
Certainly, state pilgrim boards’ officials should be extoled for managing over
80 thousand pilgrims every year, despite obvious challenges. I am sure there
are those who see it differently, though. They point at countries like
Indonesia which come to hajj with a larger population of pilgrims and yet do
not have the problems we have. They are not kept in the last tents barely
within the boundaries of ‘Arafah and they have clean tents in Minaa. That is
true, but you have to look at the country itself, its leadership and then you
will appreciate that the officials are doing a great job in spite of
everything.

The current leadership of Hajj regulators in Nigeria is
working hard to raise the standard of the service by making feeding and Minaa/ArafaatAdditional Services (Category C) of the Mu’assasah part of
the Hajj package for state pilgrims’ boards. With this arrangement in 2012,
Nigerian pilgrims will be closer to Jamaraat than they had ever been in the
history of Hajj in this country. This arrangement means greater cost to the
organisers and ultimately the pilgrims.

For the aforementioned services in 2012 Hajj, state pilgrims
are to pay N622, 445.05 for the lowest seat, and be entitled to $750
as basic travelling allowance (BTA); N658, 695.05 for medium seat, and
receive $1000 BTA. The highest category in Hajj seat is N736, 570.05
with $1, 500 as BTA. Of course none of these categories is attainable
for the very poor in our society. This is the cheapest fare for Hajj today,
given what is charged by the Hajj tour operators. The average price for the
international package is almost twice as this and no tour operator gives BTA to
his pilgrims. Maybe in the future the industry will create this opening for the
international Hajj pilgrims; they are also Nigerians, afterall.

The services of the average Hajj tour operator are distinct
from what is described above. His pilgrims are housed in, at least, 3 to 4 star
hotels (not forgetting the fact that some of these hotels are actually 2 or
less star if one compares their standard with what obtains in the First World)
within reasonable distance to the Harams in Makkah and Madinah. This type of
accommodation and feeding will cost each pilgrim about SR20, 000 = N800, 000 at
N40 to Saudi Riyal. Add to that the cost of transportation, outside the
transport provided by the Car Syndicate as attached to the compulsory Royalties
of SR1029 (N41, 160) paid for each pilgrim but which the tour operator forfeits
in order to provide better mean of transport to his hajjis during the 5 days of
Hajj. On account of this, the tour operator will pay SR1, 500 (N60, 000) on
behalf of each pilgrim for 2008 model of Mercedes buses provided by the
Mu’assasah. He will also pay SR2, 500 (N100, 000) for each of his pilgrims for
category B in Minaa/Arafaat tents of the Additional Services also
provided by the Mu’assasah. As I mentioned above, even state pilgrims will be
in category C tents, so, for a tour operator to give something higher his
pilgrims should at least enjoy the services of a B tent. The package of each
pilgrim, therefore, excluding air ticket fare and the profit margin of the Hajj
tour operator, will be at least N1, 001, 160. Of course this rate will
be higher or lesser subject to type of hotel, proximity to Haram, and room
configuration which should not exceed 4 people in a room.

For the VIP Hajj package the tour operator must keep his
pilgrims in 5 star hotels within the Harams in Makkah and Madinah.
Accommodating each pilgrim will cost SR40, 000 (1, 600,000). Add the Royalties SR1029
(N41, 160), and the payment of SR7, 375 (N295, 000) on behalf of each pilgrim
for the Minaa/Arafaat category A tents, with the Mu’assasah. Another
cost is SR500 (N20, 000) for Saudi local air ticket from Jeddah to Madinah for
those pilgrims that have not got a direct flight to Madinah, and SR2000 (N80,
000) for transport in the latest model of buses with inbuilt toilets. So, the
least VIP Hajj package, subject to the proximity of hotels to Haram, excluding
return air tickets, will be about N2, 036, 160. As stated earlier this
cost does not include profit margin and other incidentals as are bound to occur
in Hajj operations.

Unfortunately, some tour operators will not do their
homework. They just copy what others publish on their brochure, reduce the rate
by certain percentage without knowledge and try to market that. Such tour
operators find themselves in trouble where they discover that what they collect
from the pilgrim is insufficient for the services they promise to provide.

Hajj services are dependent upon a number of factors the bulk
of which are in Saudi Arabia where the rites are observed. Hajj is unique. Only
in Hajj will 3 million people or more gather in the same place, at the same
time, for the same purpose and doing the same thing. Those pilgrims who question
why the rates of hotels are exorbitant in Saudia, why the tour operator subjects
them to strict cancellation policies and why they cannot pay for Hajj package
when they please have missed the point completely. Hilton Makkah for
example has more revenue than any other Hilton Hotel around the world. The same
could be said of other hotels like Intercontinental, Mövenpick, etc. Nothing explains this other
than the fact that they happened to be situated in the territory of pilgrimage
rites, Makkah, right in front of the most frequented building; the Masjidul
Haraam (Sacred Mosque). So, pilgrims should not expect a uniform rate
and cancellation policy in a hotel in Makkah because they are used to the
services of similar name in London, America, Germany, etc.

There is nothing hidden in the facts mentioned in this piece.
You can make your own calculations by asking the hotels and other service
providers in Makkah and Madinah. Unless the current demolition of structures
around Haram is followed by construction of many more hotels, the price for
Hajj packages will continue to rise. It is apparent, from what I have stated
here, the very poor cannot perform Hajj even with state pilgrims’ arrangement
which is now the cheapest, and the hotels around Haram are reserved only for
the super-rich on the so called VIP Hajj packages. But, alhamdulillah, Allah
has made Hajj obligatory only on those who can afford it.

To be frank, Hajj, as it is organised currently, is not
cheap. The cheapest you get which I have mentioned above is the government’s
way of helping out. If you have to pay what is truly the price of a decent room
in a decent hotel near the haram and get decent tents in both Minaa and
‘Arafaat, you must cough out a fortune. Those services are not the types we are
used to back home; they are in a league of their own. I am amazed yearly by the
level of expertise the hoteliers have reached in managing millions of clients
yearly. They seem to have an inexhaustible store of human and material
resources to cater to the needs of the pilgrims.

There are many Nigerians on whom this reality is lost. They
insist on being pampered and display tantrums like children when they cannot
have their way. They forget entirely what brought them to the Holy Land and
they seem not to remember that the tour operator merely procures the services
of the Saudi service providers on their behalf. He has very little control on
how big your room will be; how much of the Ka’abah you can see from your window
or how nice the hotel staff will be.

If Allah had made hajj compulsory on all, regardless of your
purse, it would have become a huge problem that so many are unable to find the
means to be on hajj yearly. To begin with, the Saudi government gives Nigeria
just 95,000 slots every year. That means in a country of at least 80 million
Muslims, only 95,000 make the cut yearly! That includes repeat pilgrims who have
been doing the pilgrimage yearly since they were children. Then there is the
matter of finance. Allah’s messenger (and also the Qur’an) expressly stated
that it is for those who are able to make the journey. This requires getting to
the Holy Land and finding somewhere to lay your head at night.

I have heard arguments to the effect that companies like mine
are excluding the poor. I am yet to understand the logic of the argument. It is
like saying people should not sell cars because some people can only afford
motorcycles. There will always be those who can afford the expensive services
and those who will choose something less expensive. It is simple economics; you
forgo some wants to meet others. Those who pay for the cheaper packages know
what they endure. And those who pay for the VIP know what they had to pay in
exchange for less hassles, greater comfort and reliability. They had to make a
decision on what comfort is worth to them. What would be morally wrong would be
a situation where anyone feels superior to the others on account of his
affluence. We are as equal as the teeth of a comb before Allah.

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The contents of this blog are from my weekly column with LEADERSHIP Friday Newspapers. Therefore, the date of publication here may vary from that on which the original piece appeared on the Leadership column.